SUBSEQUENT-ADVANCE RULE

SUBSEQUENT-ADVANCE RULE

subsequent-advance rule. Bankruptcy. The principle that a preferential transfer by the debtor will not be avoided or rescinded by the debtor’s bankruptcy trustee if (1) the creditor extended new value to the debtor after receiving the preferential transfer, (2) the new value is unsecured, and (3) the new value remains unpaid after its transfer. 11 USCA ¡ì 547(c)(4). [Cases: Bankruptcy 2613(4).]
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Carl, Chinese legal translator, specializes in translating legal documents pertaining to complex business disputes.